.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
Burn Standard Refractory Unit Becomes Wholly-Owned SAIL Subsidiary
12/28/2011 - Maharatna Steel Authority of India Limited (SAIL) has completed the process of transferring Burn Standard’s Refractory Unit at Salem to SAIL Refractory Company Limited (SRCL), a newly formed subsidiary of SAIL.
Maharatna Steel Authority of India Limited (SAIL) has signed a deed of transfer with Burn Standard and Co. Ltd. (BSCL) transferring BSCL's Refractory Unit at Salem to SAIL Refractory Company Limited (SRCL), a newly formed subsidiary of SAIL.
Burn Standard’s refractory plant at Salem produces basic grade refractories from the raw magnesite available from its captive mines at Salem. SAIL plants at Bokaro, Bhilai and Rourkela have been sourcing refractory materials from the Salem facility, and SAIL has already initiated action toward manpower deployment and capex studies to plan for installation of tunnel kiln, mixing machine, etc., at the newly acquired unit. A previously declared non-operational shaft kiln has also been brought under operation. Action is also being taken to arrange raw material for the Salem Refractory Unit through SAIL's central procurement system as in the case of SAIL Refractory Unit and other plants.
Since SAIL's requirement of refractory material is expected to increase substantially after implementation of its modernization & expansion plans, the merger holds immense strategic advantage for SAIL in the long run. SAIL Chairman Shri Verma termed the transfer as "an enduring and mutually beneficial move" for both the companies.
The process for transfer of Burn Standard’s Salem Refractory Unit was initiated on June 10, 2010, when the Cabinet Committee on Economic Affairs (CCEA) approved the financial restructuring of Burn Standard, and authorized the Department of Heavy Industries and Ministry of Steel to work out operational steps for the transfer. SAIL Refractory Company Limited was subsequently incorporated at Coimbatore, Tamil Nadu on August 23, 2011, and a task force headed by Shri S. Machendranathan resolved all the issues, paving the way for transfer of the unit to SRCL.
The deed for the transfer was signed by BSCL Managing Director Mr. D. Marandi and SRCL Chairman Mr. S. Hanumantha Rao in the presence of Member of Parliament & Chairman of the Parliamentary Standing Committee on Industry Shri Tiruchi Siva, Member of Parliament Shri K.B. Shanappa, Secretary (Steel) Shri P.K. Misra, Secretary (Heavy Industries) Shri S. Sundareshan, Addl. Secretary & Financial Advisor, Ministry of Steel Shri S. Machendranathan, SAIL Chairman Shri C.S. Verma, SAIL Directors and other senior officials of Parliament, Ministry of Steel, Dept. of Heavy Industries and the two corporates.
